Within the Perfectly Competitive Market Structure, Consider a Labor Union

question 112

Multiple Choice

Within the perfectly competitive market structure, consider a labor union that manages to obtain higher wages for its members. At the time the union obtains higher wages, the perfectly competitive firms are earning positive economic profits. It follows that

• A)initially higher wages will reduce profits.
• B)in the long run product prices will be higher because of higher wages.
• C)in the long run the firms in the industry will earn below normal profits.
• D)in the short run the firms in the industry will necessarily earn below normal profits.
• E)a and b

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Definitions:

Sarcopenia

The loss of skeletal muscle mass and strength as a result of aging.

Muscles Deteriorate

The process through which muscle tissue breaks down or weakens, often due to aging, disease, or lack of use.

Age-related

Pertaining to changes or developments that occur as a part of the aging process.

Stress

A physical or psychological response to internal or external pressures, perceived as challenging or threatening to an individual's well-being.